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The authorised representative of the Attock Oil Group of Companies Mr.
Shuaib A. Malik handed over a pay order worth Rupees four billion one hundred
three million seven hundred eighty three thousand nine hundred one only
(Rs.4,103,783,901/=) as first instalment of the total offer of Rs.16.415
billion to Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation &
Investment for the Strategic sale of National Refinery Limited here today.
The Bidding for NRL privatisation was held on May 31, 2005 and Privatisation
Commission (PC) Board recommended the offer for approval of Cabinet Committee
on Privatisation (CCOP), which approved on June 7, 2005 the sale of 51%
(33,985,788 shares) equity stake in National Refinery Limited ("NRL" or the
"Company"), together with transfer of management control to the Attock Oil
Group.
As per sale agreement the buyer will deposit the remaining 75 % amount within
60 days after issuance of letter of acceptance. The Attock Oil Group can make
the final payment of Rs.12.011 billion (adjusted for Rs.300 million earnest
money already submitted by them) by August 06, 2005. However, the Group has
indicated that it will make the remaining payment during July 2005.
Three pre-qualified bidders 1. Attock Oil Group, 2. Crescent Steel and Allied
Products and Shakarganj Mills Limited and 3. Fauji Foundation Consortium had
become eligible for bidding after depositing Rs.300 million each as earnest
money by the due date.
The Attock Oil Group submitted the highest bid with an offer of Rs.483/- per
share and total bid value of Rs.16. 415 billion, Crescent Steel and Allied
Products and Shakarganj Mills Limited were second ranked bidder with an offer
of Rs.260/- per share with a total bid value of Rs.8. 836 billion while Fauji
Foundation Consortium was the third ranked bidder witn an offer of Rs.197/-
per share and a total bid value of Rs.6. 695 billion.
Dr. Hafeez Shaikh hoped that transaction of NRL would improve its operational
performance after its handing over to the private sector. Privatisation
Commission engaged Citigroup Global Markets Limited of UK in April last year
to provide financial advisory services for the privatisation of the National
Refinery Limited.
PC received 29 EOI for NRL while 16 parties submitted their Requests for
Statement of Qualification (RSOQs). Among them 11 parties were pre-qualified
for conducting due diligence in the data room. Six parties participated in the
pre-bid conference while three parties finally decided to participate in the
bidding round.
National Refinery Limited was incorporated in Pakistan on August 19, 1963 as a
public limited company. The refinery complex comprises two lube refineries, a
fuel refinery and a Benzene, Toulene and Xylene plant, located in the Korangi
Industrial Area within Karachi, Pakistan's largest city. The Company's
designed crude oil processing capacity is about 2.7 million tonnes per year
(62,050bpsd) with a broad range of petroleum products to cater to Pakistan's
growing demand for petroleum products. NRL is uniquely positioned in the
economic landscape of Pakistan, where it enjoys the unrivalled business niche
as the only local refinery to produce lube base oils ("LBO") and the single
largest producer of high quality asphalts. Effectively, NRL has an 80% share
of the LBO market and 80% share of asphalts. In addition to indigenous
blenders, LBO produced is sold to several MNC marketing companies where it
serves as a key component in the production of high-end branded lubricants. In
addition, the company produces other value added petroleum products, specialty
oils and slack waxes. NRL products adhere to stringent international quality
specifications and the Company is certified in accordance with OHSAS-18001 and
ISO-14001.